How the Financial Sector Will Benefit from Big Data

Big data is part of advancements everywhere and across all industries. Defined as a “large volume of data, structured or unstructured, that can help businesses make strategic decisions based on analysis”, big data, and the ability to understand it through reporting, has helped to move businesses forward and create smarter, more successful decision making from issues ranging to finance to human resources to customer relations and more.

The importance of big data for businesses and decision-makers has more to do with the quality of data and the analysis of that data rather than the raw amount. Good data can be used to help businesses troubleshoot failures or issues, predict future system problems, generate information on customers at the point of sale to help elevate their experience, and help businesses create strategies for time and cost reduction efforts. All of this is based on the ability to sort data and look for patterns and other insights.

The role of big data in the banking sector has a lot to do with just that – the ability to make meaning from huge amounts of data. Big data in the banking and financial services industries have been responsible for helping to create better customer experiences and also help protect businesses. Here are some examples of big data uses in banking:

Fraud Detection

Attempted fraud is common in highly regulated areas like banking and finance. One of the ways that the financial sector can benefit from big data is through better analysis of data sets that can lead to enhanced fraud detection and prevention. Advancement in analytics and machine learning mean that fraud detection teams can find out about fraud risks faster and more accurately.

Risk Analysis

Another common problem in the financial sector is an appropriate understanding of risk. Many financial organizations make it their whole job to understand risk – insurance agencies need to know how much risk they’re taking on when insuring a customer, while investment firms need to understand the risks of the market and how much risk their customers are comfortable with. Big data analysis allows for this process to be faster and more accurate for a better customer experience, as well as a less adverse experience for the banks.

Personalized Products

Big data offers companies a wealth of information. The financial sector and banking institutions can benefit from big data by using that information to customize audience sets by demographic, behavior, etc. and offer them personalized products. Not every product – mortgage, savings account, IRA, stocks and bonds, investments or loans – will be a good fit for every customer though. Big data means banks and financial institutions can be more specific about product offerings, likely increasing the chance that the right product will be offered to the right person.

Big data in the financial sector offers many benefits. From better security to better risk management to better customer experiences that can ultimately lead to profitable transactions for the organization, big data is an essential element that can help move banking and financial organizations into more secure and successful positions.

Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer as a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Scoota Partners with Ternio

The Funnel Reports Top News Story Scoota, the market leader for automated, brand-safe online branding has partnered with Ternio, a preferred blockchain partner, to bring transparency to programmatic digital advertising. ****
Subscribe to TechFunnel.com HERE: https://www.techfunnel.com
For more content from TechFunnel.com, click HERE: https://www.techfunnel.com
Watch The Funnel Report and other videos HERE: https://www.youtube.com/channel/UCGTxz2nU-LVbyxtVq1C_MWQ
Like The Funnel Report on Facebook HERE: https://www.facebook.com/TechFunnelOnline/
Follow The Funnel Report on Twitter HERE: https://twitter.com/tech_funnel
Follow The Funnel Report on Instagram HERE: https://www.instagram.com/tech_funnel_online/ TechFunnel.com is an ambitious technology-focused digital channel dedicated to highlighting the economy of information and the massive intersection of business and technology. We offer useful information, news, tools, and recommendations about what is new in the industry, where technology is headed, and how it can help you improve your personal and professional life. The goal of TechFunnel.com is to keep businesses and consumers on the cutting edge of need to know information about the people, product, companies, and innovations that are changing the world.

The Funnel Report: Friday Recap (Nov 12-15)

The Funnel Reports Weekly News Recap Experience management company, Qualtrics, was all set for an IPO launch this week before SAP announced that it is acquiring the company for $8 billion. Cisco recently announced the launch of a hybrid deployment option for customers of both Cisco and Amazon’s Web Services. Alibaba has decided to make Alicloud, their cloud computing arm, its main business in the future. Cisco recently announced the layoff of roughly 460 employees from their San Jose, California headquarters. Two-year-old startup, Growlabs, has been acquired by Adroll Group to help them boost their identity graph and data capabilities. Mixpanel is the world’s largest user analytics platform and is looking to expand their commitment to helping organizations grow and make more data-informed marketing decisions. VoltDB, a real-time application database, will derive analytics results from data streams based on machine learning algorithms from MapR Technologies. ****
Subscribe to TechFunnel.com HERE: https://www.techfunnel.com
For more content from TechFunnel.com, click HERE: https://www.techfunnel.com
Watch The Funnel Report and other videos HERE: https://www.youtube.com/channel/UCGTxz2nU-LVbyxtVq1C_MWQ
Like The Funnel Report on Facebook HERE: https://www.facebook.com/TechFunnelOnline/
Follow The Funnel Report on Twitter HERE: https://twitter.com/tech_funnel
Follow The Funnel Report on Instagram HERE: https://www.instagram.com/tech_funnel_online/ TechFunnel.com is an ambitious technology-focused digital channel dedicated to highlighting the economy of information and the massive intersection of business and technology. We offer useful information, news, tools, and recommendations about what is new in the industry, where technology is headed, and how it can help you improve your personal and professional life. The goal of TechFunnel.com is to keep businesses and consumers on the cutting edge of need to know information about the people, product, companies, and innovations that are changing the world.

Mixpanel Expands Business Offerings

The Funnel Reports Top News Story Mixpanel is the world’s largest user analytics platform and is looking to expand their commitment to helping organizations grow and make more data-informed marketing decisions. ****
Subscribe to TechFunnel.com HERE: https://www.techfunnel.com
For more content from TechFunnel.com, click HERE: https://www.techfunnel.com
Watch The Funnel Report and other videos HERE: https://www.youtube.com/channel/UCGTxz2nU-LVbyxtVq1C_MWQ
Like The Funnel Report on Facebook HERE: https://www.facebook.com/TechFunnelOnline/
Follow The Funnel Report on Twitter HERE: https://twitter.com/tech_funnel
Follow The Funnel Report on Instagram HERE: https://www.instagram.com/tech_funnel_online/ TechFunnel.com is an ambitious technology-focused digital channel dedicated to highlighting the economy of information and the massive intersection of business and technology. We offer useful information, news, tools, and recommendations about what is new in the industry, where technology is headed, and how it can help you improve your personal and professional life. The goal of TechFunnel.com is to keep businesses and consumers on the cutting edge of need to know information about the people, product, companies, and innovations that are changing the world.